Design principles for blockchain and smart contract systems in the energy sector the case of Finland

The energy industry in Europe is in the middle of significant changes as the ambitious plans to reduce carbon emissions are setting new requirements for the energy generation. The development of renewable energy sources has been presented as an environmentally friendly solution to this issue, but du...

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Main Author: Leskinen, Juho
Other Authors: Informaatioteknologian tiedekunta, Faculty of Information Technology, Informaatioteknologia, Information Technology, Jyväskylän yliopisto, University of Jyväskylä
Format: Master's thesis
Language:eng
Published: 2021
Subjects:
Online Access: https://jyx.jyu.fi/handle/123456789/74966
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author Leskinen, Juho
author2 Informaatioteknologian tiedekunta Faculty of Information Technology Informaatioteknologia Information Technology Jyväskylän yliopisto University of Jyväskylä
author_facet Leskinen, Juho Informaatioteknologian tiedekunta Faculty of Information Technology Informaatioteknologia Information Technology Jyväskylän yliopisto University of Jyväskylä Leskinen, Juho Informaatioteknologian tiedekunta Faculty of Information Technology Informaatioteknologia Information Technology Jyväskylän yliopisto University of Jyväskylä
author_sort Leskinen, Juho
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description The energy industry in Europe is in the middle of significant changes as the ambitious plans to reduce carbon emissions are setting new requirements for the energy generation. The development of renewable energy sources has been presented as an environmentally friendly solution to this issue, but due to large proportion of renewable energy generation being weather dependent, the volatility in the energy market is increasing. The volatility issues have increased the demand for more flexible energy system that would be more resistant to the rapid changes in energy generation and consumption levels. European Union (EU) have pursued higher level of harmonization between its member states energy legislation in order to move towards pan-European electricity and energy markets. In addition, Nordic countries are reforming their energy markets through the introductions of data hubs, which are centralised information exchange systems for the electricity retail markets. Presented changes are placing considerable challenges for the Finnish energy sector. This Master’s Thesis explores how blockchain and smart contract systems could be utilized in the Finnish energy sector, and how they could solve the previously presented issues. Blockchain and smart contract systems are emerging technologies that have already demonstrated their benefits regarding automation, in-formation security and process efficiency. Over the last couple of years, these solutions have had growing interest from the energy industry as different blockchain or smart contract-based solutions have been presented. Different pilot projects utilizing blockchain systems have been implemented around Eu-rope and North America. Many of these pilot projects have presented different kinds of peer-to-peer trading systems utilizing blockchain and smart contract systems. Despite of promising results, the possibilities of the technologies in question have not been largely researched in the context of Finnish energy sector. This research paper presents simplified conceptual model of Peer-to-Peer trading in energy community and analysis discussing strengths, weaknesses, opportunities, and threats of blockchain and smart contract systems in the Finnish energy sector.
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spellingShingle Leskinen, Juho Design principles for blockchain and smart contract systems in the energy sector : the case of Finland smart contracts Peer-to-Peer trading energy community Tietojärjestelmätiede Information Systems Science 601 energia-ala energiamarkkinat uusiutuvat energialähteet lohkoketjut energiateollisuus energy sector energy market renewable energy sources blockchains energy industry
title Design principles for blockchain and smart contract systems in the energy sector : the case of Finland
title_full Design principles for blockchain and smart contract systems in the energy sector : the case of Finland
title_fullStr Design principles for blockchain and smart contract systems in the energy sector : the case of Finland Design principles for blockchain and smart contract systems in the energy sector : the case of Finland
title_full_unstemmed Design principles for blockchain and smart contract systems in the energy sector : the case of Finland Design principles for blockchain and smart contract systems in the energy sector : the case of Finland
title_short Design principles for blockchain and smart contract systems in the energy sector
title_sort design principles for blockchain and smart contract systems in the energy sector the case of finland
title_sub the case of Finland
title_txtP Design principles for blockchain and smart contract systems in the energy sector : the case of Finland
topic smart contracts Peer-to-Peer trading energy community Tietojärjestelmätiede Information Systems Science 601 energia-ala energiamarkkinat uusiutuvat energialähteet lohkoketjut energiateollisuus energy sector energy market renewable energy sources blockchains energy industry
topic_facet 601 Information Systems Science Peer-to-Peer trading Tietojärjestelmätiede blockchains energia-ala energiamarkkinat energiateollisuus energy community energy industry energy market energy sector lohkoketjut renewable energy sources smart contracts uusiutuvat energialähteet
url https://jyx.jyu.fi/handle/123456789/74966 http://www.urn.fi/URN:NBN:fi:jyu-202104072288
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